Adelaide Brighton (ABC)

JPMorgan has lifted cement supplier
Adelaide Brighton
to “overweight" from “neutral", taking its price target to $3.65 from $3.26.

Analysts say the company has developed a track record of following a strategy to strengthen its cement and lime operations, noting that a series of acquisitions have led to greater vertical integration and a more balanced and stable business.

The broker notes Adelaide Brighton is an “obvious candidate" for consolidation given Boral’s attempted takeover in 2003-04 but thinks near-term activity is unlikely.

“The recent acquisition of Crane Group by Fletcher Building underscores the appetite of well-capitalised competitors," says analyst Jason Steed.